GBP: The British Pound experienced a sharp decline last week, hitting six-month lows against the Dollar amid concerns over proposed tariffs. However, it rebounded after an unexpected rise in inflation reduced the likelihood of a Bank of England rate cut. By the end of the week, weaker UK retail sales and a lacklustre PMI reading weighed on the Pound, though it managed a partial recovery against the U.S. Dollar.

EUR: The Euro came under significant pressure on Friday following disappointing business confidence data across the Eurozone, including a steep drop in French PMI and a contraction in Germany’s services sector. Additionally, Eurozone manufacturing slid further into recession. This led markets to increase expectations of a potential ECB rate cut in December, adding to the Euro’s weakness.

USD: The U.S. Dollar softened in early European trading today, retreating from its recent highs after achieving eight straight weeks of gains last Friday. The Dollar Index dropped by 0.5% to 106.950. Despite this pullback, the Dollar remains resilient due to persistent inflationary pressures and the outlook for higher U.S. interest rates.